TRENTON, N.J. (November 13, 2020) – The New Jersey Economic Development Authority (NJEDA) Board of Directors today approved the creation of the Brownfields Loan Program. This program will make low-interest loans of up to $5 million available to brownfield redevelopment projects for all aspects of brownfield revitalization, including assessment, investigation, and demolition. It will be one of the only funding sources available to cover pre-construction planning, demolition, asbestos, PCB removal, and lead-based paint remediation. More information is available at https://www.njeda.gov/brownfields.
 
“Revitalizing contaminated sites and putting them back to productive, locally-appropriate use is an essential component of Governor Murphy’s commitment to building stronger, more vibrant communities across New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “The Brownfields Loan Program and the NJEDA’s other collaborations with NJDEP Commissioner McCabe and other partners to support brownfields redevelopment will play a crucial role in building a greener, fairer New Jersey by incentivizing investors to consider brownfields remediation and making resources available to get these projects off the ground.”
 
“Remediating brownfields turns burdens into opportunities. By cleaning up contaminated properties and replacing them with valuable assets that benefit New Jersey’s communities, we create new paths for economic growth,” said New Jersey Department of Environmental Protection Commissioner Catherine R. McCabe. “Projects like these are important to our environmental protection, environmental justice, and economic recovery goals, but need financial resources. The NJEDA’s Brownfields Loan Program will open the door to more successful remediation by filling in one of the most pervasive funding gaps that holds back these projects.”
 
Historically, remediation has been a major barrier to successful brownfield redevelopment projects because of the lack of funding sources available to support site assessment, planning, and cleanup. The Brownfields Loan Program is a unique investment tool that will address this challenge by filling in these funding gaps to make the remediation phase of revitalization projects financially viable. The NJEDA expects this to reactivate long-stalled projects and create new opportunities for commercial, retail, and mixed-use developments that in turn will create jobs and make New Jersey’s communities more vibrant, cleaner places to live and work.   
 
The Brownfields Loan Program will offer low-interest financing of $100,000 to $5 million for all aspects of brownfields revitalization projects, including assessment, investigation, and demolition. Loans will be awarded through a competitive application process beginning in early 2021. Projects will be scored based on various details about the brownfield site itself and the proposed redevelopment project, including the location, the length of time the site has been vacant or underutilized, and how well the proposed redevelopment aligns with local plans. Projects that provide beneficial end uses that promote environmental resiliency, public health, and community well-being will receive higher scores.
 
The Brownfields Loan Program is part of NJEDA Community Revitalization, a suite of solutions designed to support development that transforms underutilized and contaminated spaces into community assets, with the goal of achieving a greener, fairer New Jersey. This includes ensuring that residents living in communities that have historically suffered from disinvestment, environmental contamination, and health disparities benefit from brownfields redevelopment. In addition to the Brownfields Loan Program, NJEDA Community Revitalization initiatives include the Brownfields Impact Fund, the proposed Brownfields Redevelopment Tax Credit, the expanded Community Collaborative Initiative (CCI), and the Brownfields Center at NJIT.
 
“The Brownfields Loan Program is a critical component of the NJEDA’s holistic approach to environmental protection and remediation,” said NJEDA Senior Brownfields Advisor Elizabeth Limbrick. “As one of the only sources of funding available for covering costs associated with pre-construction planning, demolition, and asbestos and lead-based paint remediation, the loan program will be a critical tool to help projects get through the early stages of brownfield remediation and move on to the important work of transforming contaminated sites into community assets more quickly and at lower cost.”
 
More information about the Brownfields Loan Program and other NJEDA Community Revitalization solutions is available at https://www.njeda.gov/brownfields.  
 
 
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.
 

TRENTON, N.J. (April 9, 2019) – The New Jersey Economic Development Authority (NJEDA) today approved the creation of a new Brownfields Loan Program that will provide low-interest financing to help complete remediation of vacant or underutilized brownfields sites, paving the way for these sites to be revitalized and put back to productive use. The program is part of Governor Phil Murphy’s efforts to drive targeted investments in underserved communities.
 
“Investing in communities is a pillar of our plan for a stronger and fairer New Jersey economy, and the brownfields loan program is a crucial tool we can use to build cleaner, safer communities where businesses and families can thrive,” said Governor Murphy. “Cleaning up contaminated sites and repurposing them for productive use allows us to achieve our goals for economic growth while protecting our environment and minimizing sprawl.”
 
The expanded brownfields loan program will provide low-interest bridge financing to make the remediation phase of a project financially viable. The program will make financing of up to $5,000,000 available to potential brownfield site purchasers and current brownfield site owners to cover the costs associated with site investigation, assessment and remediation, and building and structural issues such as demolition and asbestos removal. While the brownfields loan will only finance the remediation aspect of the project, all projects must include a redevelopment plan for the reuse of the remediated site.
 
To be eligible for funding, the NJEDA will conduct an analysis of the project application to determine if the project is economically feasible or if a funding gap exists. The remediated property must also have an appraised value of at least 100 percent of all debt financing (including the proposed brownfields loan), and the project must submit an environmental report from a licensed site remediation professional or other qualified professional to verify that contamination exists on the site. Projects must also demonstrate local support through a letter of support from the mayor of the municipality in which the project is located.
 
Funding will be made available through competitive application rounds, and projects that meet this base eligibility will then be scored by Authority staff according to various details about the brownfields site and/or proposed redevelopment project. This will include the site location, the length of time the site has been vacant or underutilized, and alignment of the redevelopment project to local redevelopment plans. Priority of funding within a competitive round will be determined by highest overall scores, and all projects must meet a minimum score in order to be considered for funding.
 
The standard interest rate for projects that meet these baseline eligibility requirements will be fixed at 3 percent. However, the NJEDA will review proposed redevelopment plans and may apply interest rate reductions if the redevelopment project supports certain community development goals, including mixed-use residential development with an affordable housing component, food delivery sources in urban food deserts, primary health care services, tourism destination projects, electric vehicle charging stations, smart growth parking (convertible to commercial space), and incubators and collaborative workspaces.
 
“Transforming contaminated sites into productive projects that enhance the areas where they are located is one of the most effective investments we can make in New Jersey’s communities,” said NJEDA Chief Executive Officer Tim Sullivan. “The brownfields loan program and proposed remediation and revitalization tax credit will play a crucial role in getting these projects off the ground and bringing new life to communities around the state.”
 
Applications for the Brownfields Loan Program will be available in the coming months.
 
To read Governor Murphy's full economic plan, please visit: https://nj.gov/economicplan
 
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about EDA resources for businesses call EDA Customer Care at 609-858-6767 or visit https://www.njeda.gov  and follow @NewJerseyEDA on Facebook, Twitter, and LinkedIn.